How domestic cosmetics move toward high-end

　　Consumption upgrades do not necessarily require price increases, and high prices do not mean high-end.

If the cosmetics industry wants to get a share of the mid-to-high-end market and win the right to speak, it must realize differentiated operations and take the road of quality upgrading. The best way for this path is to improve the level of technological innovation.

　　Recently, when purchasing domestic cosmetics, many consumers have discovered that the prices of many popular brand star products have risen from more than 100 yuan in the past to 200 yuan, 400 yuan or even more than 1,000 yuan, which is higher than their expectations.

As a result, complaints such as "it is better to buy foreign brands for such expensive domestic cosmetics" pass by my ears from time to time.

Should domestic cosmetics be "cheap and big"?

What should domestic products rely on to win the "heart" of consumers?

　　Analysis of the reasons behind the price increase of domestic products can be summarized into three aspects: first, the price of raw materials has risen, and the price increase of some basic raw materials such as glycerin extracted from petroleum has been particularly obvious. The prices of raw materials such as active agents have also risen; second, many leading companies in the industry have increased R&D team building and investment in R&D, and the application of new technologies and ingredients has driven up costs; third, the "Regulations on the Supervision and Administration of Cosmetics" that will be implemented in 2021 It is expressly stipulated that the efficacy claims of cosmetics should have sufficient scientific basis. Therefore, before the products are launched on the market, it is also a considerable investment for enterprises to conduct necessary efficacy tests.

　　Although the selling points of domestic brands are different, the price increase methods have similar trajectories.

Proya has upgraded the composition and technology of its out-of-circle product Ruby Essence. During the "Double 12" period, the discounted price of version 2.0 is 289 yuan/30ml, which is 40 yuan higher than version 1.0.

In addition to iteratively upgrading the original star products, brands such as Runbaiyan, Winona, and Proya also launched high-end new products worth more than 400 yuan to meet consumer needs such as anti-aging and moisturizing, extending the product line layout.

It can be seen from the price increase strategies of these brands that technological empowerment has become an important development direction of the cosmetics industry.

In the past two years, the domestic cosmetics industry has been more "involved" than ever before.

In order to establish a brand "moat", many domestic brands attach great importance to R & D investment in raw material development and production technology, and strive to enhance the brand's technological innovation strength at full capacity.

　　The changes in the domestic cosmetics industry have occurred against the background of consumption upgrades.

At the beginning of the rise of domestic products, they relied on channel drive and traffic promotion, and most of the product types were concentrated in categories such as moisturizing and cleaning.

In the past two years, consumers have increasingly recognized domestic products, and the brand value of domestic products has gradually grown. Consumers also need and support more domestic cosmetics that can solve actual skin care problems, which objectively promotes consumption upgrades.

But consumption upgrades do not necessarily require price increases, and high prices do not mean high-end.

If the cosmetics industry wants to get a share of the mid-to-high-end market and win the right to speak, it must realize differentiated operations and take the road of quality upgrading. The best way for this path is to improve the level of technological innovation.

　　On November 10, 18 departments including the State Administration for Market Regulation, the National Development and Reform Commission, and the Ministry of Industry and Information Technology jointly issued the "Action Plan for Further Improving Product, Engineering, and Service Quality (2022-2025)", which specifically mentioned strengthening quality brand building, "Establish and improve the quality grading system to promote brand consumption and quality consumption. Vigorously promote the project of 'same line, same standard and same quality' for domestic and foreign trade products. Promote the cultivation of a number of high-end brands in the fields of cosmetics, clothing, home textiles, electronic products and other consumer goods." .

To this end, the cosmetics industry should conduct R&D for multidisciplinary and high-level research teams involved in high-end manufacturing, such as chemistry and chemical engineering, life sciences, dermatology, biotechnology, and pharmaceutical engineering, and keep abreast of the latest cutting-edge science and technology development and its role in the cosmetics industry. Promote the application and move towards high-quality development.

　　After nearly 10 years of rapid development, the current domestic brands have initially possessed the ability to create mid-to-high-end brands.

Bloomage Bio’s financial report for the first three quarters shows that R&D expenses in the first three quarters were 277 million yuan, accounting for 6.42% of overall revenue, an increase of 44.27% from last year’s R&D investment of 192 million yuan, far exceeding the industry average.

Proya’s financial report for the first three quarters shows that the R&D expense ratio in the first three quarters of 2022 has increased to 2.41%, which is a substantial increase from the R&D expense ratio of 1.74% in the first three quarters of 2021.

Therefore, under the promotion of policies, market competition, consumer demand, etc., it is hoped that in the near future, the high-quality supply capacity of domestic cosmetics can be significantly enhanced, the quality will steadily move towards the mid-to-high end, and the quality and use functions will continue to improve to better meet consumption. the appeal of the recipient.

　　Making high-quality products is one of the basic conditions for becoming a high-end brand.

If domestic cosmetics want to become a high-end brand, they need to comprehensively improve brand building, product development, organizational marketing capabilities, and channel promotion.

To remove the label of "cheap big bowl" of domestic cosmetics, we have to rely on the cosmetics industry and enterprises to work harder.

　　Ao Rong